Deemed Exports

Deemed Exports are supplies that do not leave country, are paid in Indian Rupees, but are still deemed to have been exported, because they compete with the duty free imports. They are eligible for almost all benefits of physical exports but not for promotional incentives like MEIS/SEIS. The benefits of Advance Authorization / DFIA / EPCG (Export Promotion Capital Goods) and Drawback are available on inputs, while refund of GST may be available on output.

Supplies to following are considered as deemed exports and they get the benefits as follows:

EOU”s, BTP, EHTP, STP

Supplies to EOU, BTP, EHTP, STP from DTA (Domestic Tariff Area) are considered deemed exports. This gives rise to certain benefits to the suppliers to the EOUs etc. They can get the Advance Authorization for their imports for the purpose of supplies to EOUs. They can also get the drawbacks for their supplies. The benefits can be taken by the suppliers or the EOU themselves.

Mega Power Projects

Mega Power Projects where International Competitive Bidding (ICB) procedures have been followed at the IPP or at EPC stage can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty drawback on the inputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. In addition the Mega Power Projects can get the benefits of excise duty refunds exemption. The benefits can be taken by the suppliers or the Project owners themselves.

Projects funded by IBRD / IDA / ADB / UN agencies

Projects funded as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty Drawback on the Inputs and Excise Duty Exemption on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves. Such Projects could be infrastructure projects like Road Projects, Urban Improvement Projects etc.

Other purposes like Oil Exploration businesses for which duty free imports are allowed

Projects funded as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement. The benefits could be in the form of Advance Authorization, or Duty Drawback on the Inputs and GST refunds on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves. Such Projects could be infrastructure projects like Road Projects, Urban Improvement Projects etc.

Supplies to Projects as above where ICB procedures have been followed can get the benefit of Deemed Exports for their domestic procurement.

The benefits could be in the form of Advance Authorization or Duty Drawback on the Inputs and GST refund on the outputs. The benefits can be availed by the Contractor/Sub-contractors or other suppliers. The benefits can be taken by the suppliers or the Project owners themselves.

Advance Authorization holders, DFIA holders, EPCG holders

Domestic suppliers to the above authorization holders can get the deemed export benefits. The benefits are GST refunds for Advance Authorization holders and EPCG holders. In addition the indigenous supplier can import his own raw material duty free or can even get a drawback. The benefits can be taken by the suppliers or the Authorization holders.

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